Feeds

Action warns of £6 million loss

MD jumps ship

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

London-based Action Computer Supplies has warned investors to prepare for losses of £6 million for this financial year.

The computer reseller said sales had been slower than expected in the first half of the year, especially in April and May. Turnover for the year ending 30 August 2000 was expected to show "a small increase", resulting in operating losses of between £500,000 and £1 million before one-off costs, the company said.

Total losses are likely to be around £6 million when including costs "relating to the remodelling of the business, and continued investment in the Internet". Action said its planned re-organisation, part of a switch from mail order to online sales, "will result in a significant reduction in future overheads and may lead to the outsourcing of certain non-core activities".

For the year ended August 1999, Action saw pre-tax profits of £2.2 million on sales of £277. The previous year, profits topped £7 million on sales of £250 million.

The company is also to lose its group MD, who is quitting after ten years at the company. George Laplante will return to the US to "resume his personal and business interests", Action said. He will stay at the company until his replacement, who has yet to be named, takes over.

Action is now pinning its hopes on its online sales business - which currently brings in £66 million per year.

"Against a background of slower recovery in IT spending after Year 2000, we are enjoying powerful and continued growth in Web sales," said Action chairman Henry Lewis.

"We believe that the Internet is central to the future of supply chain businesses and we are investing to take full advantage of our leading position." ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.